The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-03-14
BUILDING ASSOCIATIONS.
Their Cooperative Fsatures-Not Desigue
To Be Manipulating Concerns.

Their Cooperative Features-Not Designed
To Be Manipulating Concerns.
Philadelphia Ledger.
AS cooperative enterprises for the saving of
money and to enable the members to buy homes
for themselves, building associations were never
more prosperous than at the present time The
real purposes and advantages of building assoca-
tions are never seen to better advantages than
when the money market is in such condition
AS to compel them to run conservative course.
They were not designed to be money making or
CARNATIONS in the ordinary sense Being strictly
cooperative and dealing only with their own
members, they cannot, in fact, make extraordi
nary profits except at the expense of few of
their members compelled by the exigencies of
their private business to borrow money at
high premiums. When the demand for money
mas fallen off SO that only very small premiums
required to determine priority of bids or
when there is no competition, and consequently
no premium the societies, if they can keep their
money invested. are fulfilling their purpose in
the best possible way and with the greatest Sc
curity to all the members. Building
societies have in these days become more like
private corporations managed by few active
stockholders, to whom the other investors and
borrowers are personally unknown, and the lat
ter are content to pay in their money and give
scarcely thought to the business. In
the modern society there is little thought given
to its cooperative features. though they exist
and when it is possible to obtain big premiums
the money making spirit is apt to prevail as
against that which seeks to make
the benefits mutual. The societies
are now more prosperous than ever,
that is to say. they fulfill their Office better,
simply because they are jogging along at
moderate pace which does not sacrifice the in
terests of the borrowers. 1t is interesting to
observe, Also that the methods Of building So
cieties. long viewed with more or less suspicion
by professed fnanciers, have recently been
| adopted by capitalists, who have formed private
corporations to lend money terms comparable
| to those of building societies They can we'll
afford to do this. standing in the relation of
building society to its borrowers without the
complications arising from the membership of
the borrower in the corporation from which
he obtains the loan. But it took good many
| years and poor market for money to make
this scheme OF lending money to be repaid in
installments appear practicable. The money re-
suits are. may be, substantially the same by
| the two systems, and each has advantages and
| disadvantages of other kinds for the borrower
The cooperative principle underlying building
societies is however, the essential feature that
recommends them to those familiar with their
management The business spirit is not the
| only one that rules in their meetings. There is
| friendly sympathy for the borrower, desire to
| guide him to safe investments, and when he
gets into trouble. kindly effort to help him ont
| by providing new loans at reduced rates with
| which to tide him period of distress
These are common occurrences in the history of
| nearly all building associations, but they are
coupled with watchful care for the business
| interests of the corporation that does not per-
NIT the many to suffer for the mistakes or care
!essness of the few.